Asalesperson can use regular levels of effort to make a sale (30% chance of success), or they can make a stronger effort and increase their chances of success to 60%. the extra effort costs $60 more than the regular effort for the salesperson. how much should salesperson's employer provide as a bonus to assure strong sales effort? a. $60 b. $120 c. $200 d. $300

$200

Explanation: In the given case, the employer should provide bonus in such a way that the extra cost of $60 incurred gets covered, otherwise, it will result as a loss and wastage of efforts. Now, the  coverage amount from given options can be explained as follows :-

A. coverage = (60% * $60) - 60 = -$24 loss

B.  coverage = (60% * 120) - 60 = $12

C. coverage = (60% * 200) - 60 = $60

D.  coverage = (60% * 300) - 60 = $120

Thus, option C is correct as in case of option D the coverage amount is exceeding extra cost.

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income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.